Pakistan wants to reduce its disproportionate dependence on China, hence why it prefers for Russia to modernize its resource infrastructure instead of China, which aligns with US strategic goals.
I also think what we are seeing here is a global re-alignment.
I can imagine a world 30 years from now—from China to India to Russia to the Middle East, and maybe as far as Africa with its own self-sufficient network—with most of the world's natural resources, production capabilities, and people.
Essentially, a world within the world. At that point, engagement with the U.S., Europe, Japan, etc., may be preferred but not required.
I am not making a point for or against it—merely pointing out what I believe to be a long-term trend.
QUESTIONS: (1) Can it be Pakistan leaders try to copy Erdogan's playbook? (2) I don't see Russia wanting or needing any natural resources from Pakistan. At most, Russians can be the investment banker when we look at only the business side. Historically, Pakistan does not like repaying the loans. (3) The only viable option for Russia, IMHO, is to build a trade corridor to India. This would benefit both Russia and India, hence likely objected to by Pakistan and the USA. What else does Russia gain?
OPINION: Maybe Trump will try to drag Russia closer such that Russia will increase the distance to China a little bit. Even without USA explicitly meddling, Russia seems to have taken the action already based on what can be observed from the Russian point of view.
We occasionally hear reports of nations, such as Russia and China, purchasing large amounts of gold for millions if not billions of dollars. Since there seems to be so much difficulty in setting up an alternate payment system using national currencies why cant nations juts use the gold purchasing mechanism that already seems to be in place. Basically:
1. Nation A needs something worth 1 million dollars from nation B.
2.Nation A purchases an amount of gold equivalent to one million dollars using its own currency and then has the gold transferred to nation B.
A more nuanced approach is to have *net settlement* in gold, custodied by a reliably neutral third party. Each country purchases what it needs in its domestic currency and whatever excess accumulation that isn’t channeled into investment or loans gets transferred into gold ownership in the custodian’s system (no physical transfer necessary assuming the custodian has sufficient gold in the relevant countries’ accounts). The scarcity of gold is only a problem so long as the currency-value of gold is insufficient to clear surpluses, but that can be fixed by revaluing gold in (increasingly-printed, fiat) currency-terms. Trump’s Treasury Secretary nominee, Scott Bessent, was signaling earlier this year that we need a higher gold price.
Great article.
I also think what we are seeing here is a global re-alignment.
I can imagine a world 30 years from now—from China to India to Russia to the Middle East, and maybe as far as Africa with its own self-sufficient network—with most of the world's natural resources, production capabilities, and people.
Essentially, a world within the world. At that point, engagement with the U.S., Europe, Japan, etc., may be preferred but not required.
I am not making a point for or against it—merely pointing out what I believe to be a long-term trend.
QUESTIONS: (1) Can it be Pakistan leaders try to copy Erdogan's playbook? (2) I don't see Russia wanting or needing any natural resources from Pakistan. At most, Russians can be the investment banker when we look at only the business side. Historically, Pakistan does not like repaying the loans. (3) The only viable option for Russia, IMHO, is to build a trade corridor to India. This would benefit both Russia and India, hence likely objected to by Pakistan and the USA. What else does Russia gain?
OPINION: Maybe Trump will try to drag Russia closer such that Russia will increase the distance to China a little bit. Even without USA explicitly meddling, Russia seems to have taken the action already based on what can be observed from the Russian point of view.
" Historically, Pakistan does not like repaying the loans. "
Can you expand on this please ? Do the Pakis have a choice in the matter ?
Pakistan is an independent country and is not an US state because it has nukes. I really hate the Indian bots attacking Pakistan like that.
Question for Mr. Korybko and the readers:
We occasionally hear reports of nations, such as Russia and China, purchasing large amounts of gold for millions if not billions of dollars. Since there seems to be so much difficulty in setting up an alternate payment system using national currencies why cant nations juts use the gold purchasing mechanism that already seems to be in place. Basically:
1. Nation A needs something worth 1 million dollars from nation B.
2.Nation A purchases an amount of gold equivalent to one million dollars using its own currency and then has the gold transferred to nation B.
3. The deal is complete .
Why make things difficult ?
A more nuanced approach is to have *net settlement* in gold, custodied by a reliably neutral third party. Each country purchases what it needs in its domestic currency and whatever excess accumulation that isn’t channeled into investment or loans gets transferred into gold ownership in the custodian’s system (no physical transfer necessary assuming the custodian has sufficient gold in the relevant countries’ accounts). The scarcity of gold is only a problem so long as the currency-value of gold is insufficient to clear surpluses, but that can be fixed by revaluing gold in (increasingly-printed, fiat) currency-terms. Trump’s Treasury Secretary nominee, Scott Bessent, was signaling earlier this year that we need a higher gold price.